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Requlred Informetion [ The following information applies to the questions displayed below. ] Kristin Helmud is the general manager of Highland Inn, a local mid
Requlred Informetion
The following information applies to the questions displayed below.
Kristin Helmud is the general manager of Highland Inn, a local midpriced hotel with rooms. Her job objectives include
providing resourceful and friendly service to the hotel's guests, maintaining an occupancy rate, improving the
average rate received per room to $ from the current $ achieving a savings of on all hotel costs, and reducing
energy use by by carefully managing the use of heating and air conditioning in unused rooms and by carefully
managing the onsite laundry facility, among other means. The hotel's owner, a partnership of seven people who own
several hotels in the region, wants to structure Kristin's future compensation to objectively reward her for achieving these
goals. In the past, she has been paid an annual salary of $ with no incentive pay. The incentive plan the partners
developed has each of the goals weighted as follows:
If Kristin achieves all of these goals, the partners determined t ubrace Get Answer nance should merit a bonus of $ The
partners also agree that her salary will need to be reduced to $ vecause of the addition of the bonus.
The goal measures used to compensate Kristin are as follows:
Occupancy goal: roomnights occupancy rate rooms days
Compensation: weight $ target bonus $
Expense gool: $$ per roomnight
Compensation: savings
weight $ target bonus $
$$ for each percentage point saved
Room rate goal: $ rate increase
Compensation: weight $ target bonus $
Energy use goal: $$ for each cent increase
$$ for each percentage point saved
Kristin's new compensation plan will thus pay her a $ salary plus cents per roomnight sold plus $ for
each percentage point saved in the expense budget plus $ for each cent increase in the average room rate plus $
for each percentage point saved in energy use. The minimum potential compensation would be $ and the
maximum potential compensation for Kristin would be $$$
Requlred:
Based on this plan, what will Kristin's total compensation be if her performance results are: Round your answers to the nearest
whole dollar amount.
a roomnights, saved, $ rate increase, and reduction in energy use.
b roomnights, saved, $ rate increase, and reduction in energy use.
c roomnights, saved, $ rate increase, and reduction in energy use.
Answer is complete but not entirely correct.
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